According to reports, Apple is considering outbidding ESPN for the U.S. Formula 1 TV rights.

 

With an estimated $293 million globally, Apple's eagerly awaited race car film F1, starring Brad Pitt, has become the tech company's highest-grossing film ever. According to a recent Financial Times article, Apple is considering placing a bid for the U.S. television rights of Formula 1.

Notably, the corporation wants to take advantage of the hype generated by its F1 movie and increase its investment in live sports. Apple's action will put Disney's ESPN, the current American broadcaster of Formula 1, in competition. When the rights formally become available in 2026, Apple might be considered the following year.

By drawing a younger and fresh audience to the sport, Liberty Media, the U.S. owners of Formula 1, is hopeful that the momentum created by the F1 film and Netflix's Drive to Survive documentary series would contribute to raising the value of race rights.

In terms of revenue, Formula 1 receives approximately $85 million annually from ESPN. However, Citi analysts predict that the next bid might exceed $120 million annually because of the Formula 1-focused films. Additionally, viewership has increased dramatically, nearly doubling since 2018. By 2024, the average American audience is expected to reach 1.3 million.

Additionally, Apple's attempt to enter the Formula One market implies that the corporation plans to increase its footprint in live sports streaming, as evidenced by its agreements with Major League Baseball in 2022 and Major League Soccer in North America. Although ESPN had a window of opportunity to extend its deal, the firm chose not to do so. Several businesses were able to bid for the broadcasting rights as a result, including Apple.

F1 has not yet decided how it will be televised in the future, and according to someone with inside knowledge of the situation, ESPN is quite likely to keep the rights. As of right now, neither Apple, Liberty Media, nor Formula 1 have offered any comments on the subject.
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